The bill amends New Jersey's tax credit legislation for businesses, focusing on compliance and employee time commitments. It mandates that businesses receiving tax credits submit an annual certificate of compliance to verify they maintain the required number of full-time jobs. If they fail to meet these job retention standards, their tax credits will be proportionately reduced. The bill also allows businesses to waive the requirement for full-time employees to spend at least 60% of their time at the business facility under certain conditions, including a minimum time commitment and a payment to support local economic initiatives. Starting April 1, 2024, businesses outside enhanced areas or government-restricted municipalities can reduce this requirement to 40% in exchange for extending their project maintenance period and making a non-refundable payment.

Additionally, the bill introduces provisions for the transfer of tax credits among businesses, allowing them to apply for tax credit transfer certificates that can be sold or assigned to other entities. It specifies eligibility criteria for tax credits, including the necessity for businesses to demonstrate a net positive benefit to the state and municipality, and sets caps on the total credits awarded. The bill also outlines conditions under which businesses may lose their tax credits, such as significant reductions in their workforce. Overall, the legislation aims to incentivize business growth while ensuring accountability and support for local economic development, with the New Jersey Economic Development Authority responsible for managing funds and reporting on their distribution.

Statutes affected:
Introduced: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Advance Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247
Pamphlet Law: 34:1B-120, 34:1B-129, 34:1B-209, 34:1B-247